I spoke too soon above - I am still having no end of problems. But to get a successful install I used the same build - I did not start from scratch after the desktop script failed.
After the reboot I had a command prompt - so I logged on with the userid specified during installation.
Typed startx to get the gui.
Then I opened a browser session and copied and pasted the commands one line at a time from:http://wiki.linuxmce.com/index.php/LinuxMCE-0810_beta
which go like this:
sudo su - #This might ask for the password you specified earlier during the install of kubuntu.
wget -c http://deb.linuxmce.org/ubuntu/new-installer-beta2.tar.gz
tar xvf new-installer-beta2.tar.gz
After that I could go through the setup without a hitch, I configured mythtv watched a bit of live tv, scheduled a recording all looked great.
Then I tried booting my diskless MD to set that up and thats when the problems started.
During the diskless build everything froze and on the server I saw:
"Write-error on Swap-device...compcache: Error allocating memory...."
I googled that and got the instructions for disabling compcache which I did.
However, I suspect that something got screwed because the system keeps freezing and is totally unpredictable.
I am now rebuilding from scratch using the beta1 DVD to build kubuntu.
I am in the middle of upgrading kubuntu - then I will disable compcache before I repeat the internet installation of lmce as above.
Will post results - but it may take a few days cause I am going fishing tomorrow